flow-through
The Road to Hotel Profitability: Adopting Flow Through + Flex Metrics
HotStats | July 17, 2024
When measuring hotel profitability, two key metrics stand out: flow through and flex. Flow through measures the percentage of additional profit from each extra dollar of revenue, while flex gauges the ability to save profit during revenue shortfalls. These metrics provide crucial insights into financial performance, offering a comprehensive framework for operational analysis. "Understanding flow through and flex is essential for any hotel aiming to optimize profitability and navigate economic fluctuations effectively," says Lisa Martin, Regional Director for Hotel Finance, at Davidson Hospitality. Integrating these metrics into your ana...
Why Flow-Through and Flex Analysis Will Be Key Post-COVID-19
HotStats | April 13, 2020
It feels interminable now, but there will come a day when the coronavirus — this “invisible enemy” that continues to lay waste to normal, everyday functions and in a matter of weeks succeeded in leveling the world’s economy — will subside and end. Though recovering occupancy and generating revenue will be at the top of hoteliers’ lists, beyond that, understanding how to turn revenue into profit will be essential to sustaining growth post-COVID-19. One way to do that is to understand the concepts of flow-through and flex. Historically, hotel performance has been measured using three main metrics: occupancy rate, average daily...
